The PoC was conducted based on actual cross-border trade flow involving Mitsui & Co, Indorama Ventures, Bangkok Bank, and SMBC.
Sumitomo Mitsui Banking Corporation (SMBC) and Mitsui & Co Ltd today announce the successful completion of a proof of concept (PoC) utilizing Marco Polo, a blockchain-based trade finance platform developed by R3 LLC and TradeIX Limited.
The PoC was conducted based on actual cross-border trade flow involving Mitsui & Co, Indorama Ventures Group, Bangkok Bank Public Company Limited, and SMBC.
Traditionally, the parties’ exchanges of purchase orders, invoices and other documents, are paper based. Now, by utilizing the Marco Polo platform, this process has become digitalized and automated. Through the PoC, each party was able to update data pertaining to purchase orders, invoices and shipping (such as the logistics company name), based on the most up-to-date information, and at the same time share this data with other parties in real time.
Additionally, it was confirmed that Bangkok Bank was able to issue a payment guarantee for Indorama to Mitsui & Co, and that Mitsui & Co could request receivables financing from SMBC based on the payment guarantee through the Marco Polo platform if necessary.
By auto-matching data via the platform, it was possible to enhance the efficiency of data reconciliation and to demonstrate the possibilities of utilizing a blockchain-based trade finance platform.
SMBC has been getting ready for the commercial introduction of Marco Polo and expects to commence the use of the platform starting in Q3 FY2019. SMBC aims to become a leading provider of next-generation global trade finance solutions by continuing to streamline operational processes and leveraging blockchain technology.